There were signs of a partial recovery in the labour markets and economies of Latin America and the Caribbean during 2021, in the wake of the crisis caused by the coronavirus disease (COVID-19) pandemic. Nonetheless, although the labour force participation rate and employment both improved in...

This paper describes a search model with a continuum of worker and job types, free entry and transferable utility. We apply a second-order Taylor expansion to characterize the equilibrium, derive the "cost of search" and show that it is decreasing in the substitutability of worker types. This...